In 2023, Lafang China Co., Ltd (Lafang) achieved operating income of 860 million yuan, a year-on-year decrease of 3.08%; a net profit of 65.499 million yuan, a year-on-year increase of 10.58%; and a non-recurring profit of 70.1519 million yuan, a year-on-year increase of 359.99%.
Lafang is mainly engaged in the research and development, production, and sales of hair care, skincare, and cosmetics products. It currently owns independent hair care brands such as “Lafang,” ” RACLEN,” and exclusively represents overseas high-quality skincare brand ” REPACELL.”
In terms of brand income composition, ” Lafang ” and ” RACLEN ” remain the company’s mainstay brands, achieving operating income of 701.7273 million yuan, accounting for 81.62% of the operating income; ” Lafang ” sales revenue was 588.0554 million yuan, a year-on-year increase of 7.43%; ” REPACELL ” sales revenue was 77.6411 million yuan, a year-on-year decrease of 0.24%. In terms of channel income composition, the distribution channel remains the company’s main sales channel, achieving an operating income of 596.7575 million yuan, accounting for 69.41% of the operating income, a year-on-year increase of 4.07%; e-commerce and retail channels achieved operating income of 249.9503 million yuan, accounting for 29.07% of the operating income, a year-on-year decrease of 3.85%; the business super channel declined relatively more, achieving operating income of 7.8766 million yuan, a year-on-year decrease of 85.08%.
In the first quarter of 2024, Lafang achieved operating income of 224 million yuan, a year-on-year increase of 15.63%; net profit attributable to shareholders of the listed company (hereinafter referred to as “net profit”) was 27.9398 million yuan, a year-on-year decrease of 23.21%; net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses (hereinafter referred to as “deducting non-recurring profit”) was 27.2844 million yuan, a year-on-year decrease of 22.13%.
Looking ahead to 2024, Lafang stated that it will further advance the modular construction of the Lafang Intelligent Research System (LF-PLM) for product lifecycle management, while gradually integrating AI technology to enhance research and development efficiency and quality, rapidly meeting the increasingly personalized demands of the market consumers. We will continue to focus on five core technology research and innovation areas, delve into patented formulas across all categories of daily chemicals, meet the diverse needs of consumers, and pursue high-quality products with high-cost performance. At the same time, the company will deepen technical cooperation with domestic and foreign universities and research institutions to enhance the core competitiveness of research and development. The company will focus on high-end functional skincare, enhance the end-to-end brand operation and management capabilities of new luxury brands, and brand reputation.
